Topline
More than 60,000 student loan borrowers will have their debts forgiven, totaling about $4.5 billion in relief, the Biden administration announced Thursday, the latest wave of student loan forgiveness under a program intended to help public servants.
The Biden administration estimates more than $175 billion has been forgiven for nearly 5 million … [+] Americans.
Key Facts
Some borrowers enrolled in the Public Service Loan Forgiveness Program (PSLF) will have their student debts canceled, the Education Department announced.
The PSLF is designed to provide debt relief for public servants like teachers, nurses, social workers, first responders, service members and others who have made 10 years of payments.
The relief also involves borrowers who enrolled in a temporary waiver under PSLF in 2022—allowing some borrowers to get credit for previously ineligible periods—and others who benefitted from unspecified “improvements” made to the program earlier this year.
It’s not immediately clear whether eligible borrowers will be notified about their debt relief, though the Education Department has previously said borrowers whose loans were forgiven don’t need to take additional steps to receive their relief.
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Big Number
11%. That’s the estimated percentage of student loan debt canceled by the Biden administration so far, according to CNN. The Education Department said more than $175 billion has been forgiven for nearly 5 million Americans, and about $101.4 billion in student debt has been canceled for borrowers under PSLF. Only 7,000 borrowers received debt relief through the program before the Biden administration.
Key Background
The PSFL was created in 2007, though the program was criticized for including lengthy delays or challenges for borrowers to complete. About a quarter of American workers were eligible under the program as of 2013, according to the Consumer Financial Protection Bureau, though the agency later noted loan servicers had delayed or denied access to relief. Former President Donald Trump reportedly called to eliminate the program as part of his budget proposal in 2019, which would have cut $7.1 billion from the Education Department. Only 2.3% of applications for PSLF were approved between 2013 and 2021, according to the Education Data Initiative, an analysis firm studying the U.S. education system. Biden administration officials updated the program earlier this year, allowing borrowers to apply directly online after offering a waiver in 2022.
Further Reading
ForbesBiden Student Loan Forgiveness Program Clears Legal Hurdle—Here’s Who Could BenefitBy Sara DornForbesBiden Cancels Another $1.2 Billion In Student Loan Debt: Here’s Who QualifiesBy Ty Roush
